Morning Briefing
Summaries of health policy coverage from major news organizations
Insurer Deals, Mergers Raise Questions, Draw Attention
The biggest health insurance deal ever was announced earlier this month. And though it is yet to be reviewed by regulators, the proposed transaction has already prompted concerns about its potential impact in Georgia and elsewhere. (Miller, 7/16)
The health insurance world is abuzz with talk of mergers these day, but UnitedHealth Group executives on Thursday were having none of it. Earlier this month, health insurer Aetna announced a $37 billion deal to purchase Humana, which rivals United in the Medicare market. Meanwhile, Indianapolis-based Anthem has proposed buying Cigna. (Snowbeck, 7/16)
Competitors like the Blue Cross-Blue Shield carrier Anthem Inc., Aetna Inc. and Centene Corp. all have made multibillion-dollar offers for smaller companies in recent weeks as health insurers bulk up on technology try to cut costs by growing larger. They also want to stoke enrollment in areas like Medicare Advantage, the fast-growing privately run version of the federal government's coverage program for people who are over 65 or disabled. UnitedHealth, already the nation's largest Medicare Advantage plan provider, has taken a different path on acquisitions, one that veers from its core business. The insurer is wrapping up its bid for the pharmacy benefits manager Catamaran Corp., a deal valued at more than $12 billion. (7/16)
The company also offered reassurance on hospital spending, which is a particular focus for investors because it was a factor in Humana Inc.鈥檚 recent downward revision of 2015 earnings guidance. UnitedHealth said it continues to see overall reductions in per-capital hospital use and isn鈥檛 seeing any sign that it is coming in higher than expected. (Dulaney and Wilde Mathews, 7/16)
California's managed-care regulator slammed health insurance giant Aetna Inc. on Thursday for "price gouging" after it raised rates on small employers by 21%. This marked the fourth time since 2013 that California officials have found Aetna's premium increases on small businesses unreasonable. Aetna, the nation's third-largest health insurer, is raising rates by 21%, on average, for about 13,000 people covered by small employers. This change in premiums took effect July 1. Shelley Rouillard, director of the California Department of Managed Health Care, said an Aetna executive rejected her request this week to lower the rates. (Terhune, 7/16)
